Reed wins victory over institutions

Wednesday 29 January 2003 17:51 BST

REED Health's controlling shareholder Alec Reed has secured another victory over the company's institutional shareholders with the permanent appointment of acting chief executive David Fennell. The headhunter has also recruited accountant Mark Garratt as finance director.

Institutions were outraged when Alec Reed arbitrarily sacked the company's chief executive and finance director in November. They demanded Alec Reed cut the Reed family's 51% stake to about 30% to prevent future interference in running the company.

Before making his dramatic intervention at the company's annual meeting, Alec Reed, 68, failed to consult Schroders, the company's major outside shareholder.

It described his behaviour as 'beyond belief' while Reed Health advisers spoke of the 'incredible arrogance' of the act.